Exhibit 12.1
Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends
|
| Six Months Ended June 30 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Earnings: |
|
|
|
|
| ||
Pretax income excluding income or loss from equity investments |
| $ | 73,884 |
| $ | 65,309 |
|
Adjustments: |
|
|
|
|
| ||
Fixed charges |
| 131,944 |
| 75,491 |
| ||
Distributed income from equity investments |
| 12,330 |
| 4,832 |
| ||
Capitalized interest, net of amortization |
| 1,849 |
| 2,150 |
| ||
Arch Western Resources, LLC dividends on preferred membership interest |
| (57 | ) | (52 | ) | ||
Total earnings |
| $ | 219,950 |
| $ | 147,730 |
|
Fixed charges: |
|
|
|
|
| ||
Interest expense |
| $ | 76,829 |
| $ | 70,208 |
|
Capitalized interest |
| 211 |
| — |
| ||
Bridge Financing Costs related to ICG |
|
| 49,490 |
| — |
| |
Arch Western Resources, LLC dividends on preferred membership interest |
| 57 |
| 52 |
| ||
Portions of rent which represent an interest factor |
| 5,357 |
| 5,231 |
| ||
Total fixed charges |
| $ | 131,944 |
| $ | 75,491 |
|
Total fixed charges and preferred stock dividends |
| $ | 131,944 |
| $ | 75,491 |
|
Ratio of earnings to combined fixed charges and preference dividends |
| 1.67x |
| 1.96x |
| ||
Earnings consist of income from operations before income taxes and are adjusted to include only distributed income from affiliates accounted for on the equity method and fixed charges (excluding capitalized interest). Fixed charges consist of interest incurred on indebtedness, the portion of operating lease rentals deemed representative of the interest factor and the amortization of debt expense.